Ask Question
BusinessBusiness
2 April, 12:23

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $23,649 representing a gain of $3,881. The value in the operating activities section regarding this event would be

a. $ (3,881)

b. $23,649

c. $27,530

d. $19,768

+2
Answers (1)
  1. 2 April, 14:02
    0
    a. $ (3,881)

    Explanation:

    Gain on sale of fixed assets is an income. To be included in the operating section of the cash flow statement, we need to deduct the gain. The disposal of the fixed assets will go to the investing section. As the gain of the sale of assets is already added to the net income in the income statement, it will be deducted to make the accounting procedure transparent. Therefore, option A is correct.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $23,649 representing a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A researcher is testing a new painkiller that claims to relieve pain in less than 15 minutes, on average. a. State the hypotheses associated with the researcher's test. b. Describe a Type I error for this situation. c.
Answers (1)
How does an improvement in consumer confidence affect the consumption function and the aggregate demand curve?
Answers (2)
Your company does not want its employees to use the Internet to exchange personal e-mail during work hours. What is the best tool to use to ensure the company does not violate an employee's right to privacy?
Answers (1)
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875 cranes were made. The labor efficiency variance was $1,200 Unfavorable.
Answers (1)
The process of reviewing all change requests, approving changes, and managing changes to deliverables, organizational process assets, project documents and project management plan; and communicating their disposition, is known as:
Answers (1)
New Questions in Business
If berkeley shirtmakers ties compensation directly to output by paying an employee a certain amount for each unit of output produced, it is using
Answers (1)
The dramatic growth in american exports in the last years of the twentieth century was mainly indicative of
Answers (1)
An agreement to settle a debt for less than the sum claimed is referred to as? a.? rescission. b. a satisfaction. c.? an accord. d.? a promisory estoppel.
Answers (1)
In economics, what is logrolling?
Answers (1)
In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Maria's salary rises from $43,000 to $48,000, and Daisy's salary rises from $65,000 to $70,000. Who is "more than keeping up with inflation"?
Answers (2)
Home » Business » A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $23,649 representing a gain of $3,881. The value in the operating activities section regarding this event would be a. $ (3,881) b.
Sign Up Forgot Password?